The latest Arrears and Possessions data for Q2 2023 from UK Finance has revealed that there were 8,980 buy-to-let (BTL) mortgages in arrears of 2.5% or more of the outstanding balance in the second quarter of 2023, which was a 28% increase compared to the previous quarter.

This was a much bigger increase than the 7% rise in homeowner mortgages in Q2 that were in arrears of 2.5%, compared to Q1 2023.

Within the total for BTL arrears, there were 4,810 buy-to-let mortgages in the lightest arrears band (representing between 2.5% and 5% of the outstanding balance). This was a 41% rise compared to Q1. Unfortunately, 440 BTL mortgaged properties were taken into possession in the second quarter of 2023, 7% greater than in the previous quarter.

However, a UK Finance spokesperson said: “The number of mortgage holders in arrears rose in Q2 as higher mortgage rates and the cost of living continued to weigh on households. Although any rise in arrears can be worrying, overall numbers remain low with less than 1% of homeowners and less than 0.5% of landlords behind on their payments.”